Natixis and La Banque Postale in talks to merge real estate branches

Natixis and La Banque Postale have entered into talks to negotiate the conditions of a merger of their real estate investment subsidiaries, AEW Europe and Ciloger.

In a joint statement, the firms said the proposed merger would further consolidate the new entity’s position as one of the leading real estate investment managers in Europe with combined assets under management of over €23bn.

It is understood the new group would become the third largest player in the French retail market.

The platform, which is to offer real estate funds for retail investors, will serve retail banking and insurance networks of the BPCE Group and La Banque Postale as well as external clients such as independent financial advisors.

For Natixis Global Asset Management, the partnership aims to strengthen AEW Europe and its range of expertise in real assets.

Ciloger’s current owners are La Banque Postale (90%) and CNP Assurances (10%) while AEW Europe’s capital is split between Natixis Global Asset Management (60%) and the CDC Group (40%).

The CDC Group’s 40% stake in AEW Europe would be acquired by Natixis Global Asset Management prior to the completion of the transaction, both firms specified.

When the deal will be completed, Natixis Global Asset Management is expected to own 60% of AEW Europe with the remaining 40% to be held by La Banque Postale.

This plan, subject to regulatory approvals, will be presented to the employee representative bodies of the different companies involved in the transaction.

Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.